Somagen Achieves Net Profit in Q1 This Year... "Effect of Efficient Management Structure Improvement"

Somagen, a U.S.-based multi-omics specialized analysis company, succeeded in achieving net profit in the first quarter of this year. This is explained as the result of efficient capital management based on bold management restructuring last year, despite a slight decrease in sales in the first quarter compared to the same period last year.

On the 13th, Somagen announced that its sales in the first quarter of this year were approximately $6.52 million (about 8.3 billion KRW), down 11.2% from the same period last year. However, operating loss in the first quarter was about $250,000 (about 300 million KRW), a significant reduction of 85.9% compared to the same period last year, leading to the achievement of net profit in the first quarter.

A Somagen official stated, “The reason for the decrease in sales in the first quarter of this year is that one major client purchased sequencing equipment directly in the second half of last year and began conducting sequencing independently, resulting in a substantial reduction in order volume from that client.”

Notably, Somagen recently signed a new deal with the France-based global big pharma company ‘Sanofi.’ Following existing major clients such as Moderna and AstraZeneca, Somagen is expanding its global big pharma customer base to include GSK and Sanofi, expecting a quantum leap in sales starting from the second half of this year.

Additionally, Somagen continuously provides whole genome sequencing (WGS) services annually for the ‘Global Parkinson’s Genetics Program (GP2),’ a 150,000-person scale project led by the U.S. National Institutes of Health (NIH). GP2 is part of the ASAP (Aligning Science Across Parkinson's) initiative resource program, which focuses on improving the understanding of the genetic architecture of Parkinson’s disease and creating global guidelines based on that knowledge. By participating in such large national projects, Somagen is further solidifying its position in the global genome analysis market.

Hong Soo, CEO of Somagen, stated, “Although we recorded an operating loss in the first quarter due to costs related to relocating our headquarters, we were able to achieve net profit in the first quarter through management restructuring. In the second half of the year, we aim to steadily increase sales targeting major clients including global big pharma companies, while also actively expanding sales in new business areas such as proteomics analysis and single-cell analysis, with the goal of achieving overall annual operating profit.”